Pre Open Thoughts: Measured Movement!!!

Pre Open Thoughts: Measured Movement!!!

Ø If your success is not on your own terms, if it looks good to the world but does not feel good in your heart, it is not success at all. Though Tuesdays wonder again worked for Nifty and it managed to cement its position above 5400 comfortably, there’s an uneasy calm seems to be in the air as markets continue to grapple with problems.

Ø The undertone yesterday was supported by Government data showing a sharp fall in inflation in January, though the same was more or less along expected lines.

Ø Although the undercurrent is upbeat, one must exercise some caution as there could be minor hiccups. A higher close on Tuesday reinforced bullish stance on our markets.

Ø The opening today is not so grim. We could see green on the screen early on as most Asian indices are trading up this morning. The US markets finished flat. European stocks ended lower though.

Ø The Nifty had been flirting with the resistance of 5430 for the past few trading sessions and finally managed to close above the resistance level. Buying momentum could return if the Nifty manages stay above this barrier; it might cross 5500 in the near term but is bound to face hurdles on the way.

Ø We still continue to urge caution given the uncertain backdrop. On the way down 5350 level, may now act as strong positional support for the market.